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Friday 16 January 2015

Russia may sue France over scrapped warship deal


Russia may sue France over scrapped warship deal
MOSCOW, Jan. 15 (UPI) -- Russia has threatened a $3.47 billion lawsuit over France's failure to deliver two warships it commissioned.


A senior Russian defense official said Wednesday any action on Russia's part will not occur before February, and Defense Minister Sergey Shoigu said Thursday litigation could begin in six months if no resolution is forthcoming.

Russia and France agreed in 2011 on a $1.4 billion contract to have two helicopter-carrying assault ships built for the Russia Navy. The first ship completed, the Vladivostok, was ready for shipment in the autumn of 2014 but its delivery was suspended by the French government as a protest against Russia's support of the separatist movement in Ukraine. The second ship, the Sevastopol, was finished in November 2014, and is scheduled for receipt by the Russian Navy in 2015.

The cost of the vessels and penalties for delays in delivering them could total $3.47 billion. Moscow has said it will seek full compensation if they are not delivered.
"There is a contract, so everything must be strictly complied with. If the contract is abused, naturally a lawsuit follows," Shoigu said Thursday.
The French government has made delivery of the vessels contingent on progress in a Ukrainian peace settlement, but little headway has been made.

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